Sign up to save your podcasts
Or
Share "Amazon Cites Olympics, Trump Controversy as Factors in Weak Sales Forecast"
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
"Amazon Cites Olympics, Trump Controversy as Factors in Weak Sales Forecast"
Amazon's CFO, Brian Olsavsky, has attributed the company's weak sales forecast for the third quarter to significant news events, including the Olympics and the attempted assassination of former President Donald Trump. This announcement led to a 7% drop in Amazon's stock price in after-hours trading on Thursday. The company anticipates revenues between $154 billion and $158.5 billion for the current quarter, which falls short of the average analyst estimate of $158.24 billion.
Olsavsky noted that major news events, such as the Olympics and the presidential election, have historically complicated sales forecasts. He suggested that consumers are being distracted by these events, leading to a decline in online shopping. This trend is not limited to Amazon, as other e-commerce platforms have reported similar declines in purchases.
Despite the challenges, Amazon's AWS division has seen a significant increase in sales, driven by customer spending on generative AI products and traditional cloud infrastructure projects. The company plans to invest more in capital expenditures to capitalize on this renewed demand for cloud services.
In addition to the news cycle, Amazon has also observed a shift in consumer behavior, with customers opting for lower-priced items due to economic uncertainties. This trend has impacted the average transaction value, resulting in lower overall revenue growth.
Amazon's CEO, Andy Jassy, highlighted that consumers are continuing to prioritize essential purchases, which has led to brisk sales for Amazon's lower-priced Everyday Essentials business. However, the company is still grappling with the impact of the volatile news environment and economic pressures on consumer spending habits.
Amazon's stock price has been affected by these factors, with the recent drop reflecting the uncertainty surrounding the company's sales outlook. Despite these challenges, Amazon remains a significant player in the e-commerce market, and its ability to adapt to changing consumer behavior will be crucial for its future performance.
Olsavsky noted that major news events, such as the Olympics and the presidential election, have historically complicated sales forecasts. He suggested that consumers are being distracted by these events, leading to a decline in online shopping. This trend is not limited to Amazon, as other e-commerce platforms have reported similar declines in purchases.
Despite the challenges, Amazon's AWS division has seen a significant increase in sales, driven by customer spending on generative AI products and traditional cloud infrastructure projects. The company plans to invest more in capital expenditures to capitalize on this renewed demand for cloud services.
In addition to the news cycle, Amazon has also observed a shift in consumer behavior, with customers opting for lower-priced items due to economic uncertainties. This trend has impacted the average transaction value, resulting in lower overall revenue growth.
Amazon's CEO, Andy Jassy, highlighted that consumers are continuing to prioritize essential purchases, which has led to brisk sales for Amazon's lower-priced Everyday Essentials business. However, the company is still grappling with the impact of the volatile news environment and economic pressures on consumer spending habits.
Amazon's stock price has been affected by these factors, with the recent drop reflecting the uncertainty surrounding the company's sales outlook. Despite these challenges, Amazon remains a significant player in the e-commerce market, and its ability to adapt to changing consumer behavior will be crucial for its future performance.
View all episodes
By Quiet. PleaseAmazon's CFO, Brian Olsavsky, has attributed the company's weak sales forecast for the third quarter to significant news events, including the Olympics and the attempted assassination of former President Donald Trump. This announcement led to a 7% drop in Amazon's stock price in after-hours trading on Thursday. The company anticipates revenues between $154 billion and $158.5 billion for the current quarter, which falls short of the average analyst estimate of $158.24 billion.
Olsavsky noted that major news events, such as the Olympics and the presidential election, have historically complicated sales forecasts. He suggested that consumers are being distracted by these events, leading to a decline in online shopping. This trend is not limited to Amazon, as other e-commerce platforms have reported similar declines in purchases.
Despite the challenges, Amazon's AWS division has seen a significant increase in sales, driven by customer spending on generative AI products and traditional cloud infrastructure projects. The company plans to invest more in capital expenditures to capitalize on this renewed demand for cloud services.
In addition to the news cycle, Amazon has also observed a shift in consumer behavior, with customers opting for lower-priced items due to economic uncertainties. This trend has impacted the average transaction value, resulting in lower overall revenue growth.
Amazon's CEO, Andy Jassy, highlighted that consumers are continuing to prioritize essential purchases, which has led to brisk sales for Amazon's lower-priced Everyday Essentials business. However, the company is still grappling with the impact of the volatile news environment and economic pressures on consumer spending habits.
Amazon's stock price has been affected by these factors, with the recent drop reflecting the uncertainty surrounding the company's sales outlook. Despite these challenges, Amazon remains a significant player in the e-commerce market, and its ability to adapt to changing consumer behavior will be crucial for its future performance.
Olsavsky noted that major news events, such as the Olympics and the presidential election, have historically complicated sales forecasts. He suggested that consumers are being distracted by these events, leading to a decline in online shopping. This trend is not limited to Amazon, as other e-commerce platforms have reported similar declines in purchases.
Despite the challenges, Amazon's AWS division has seen a significant increase in sales, driven by customer spending on generative AI products and traditional cloud infrastructure projects. The company plans to invest more in capital expenditures to capitalize on this renewed demand for cloud services.
In addition to the news cycle, Amazon has also observed a shift in consumer behavior, with customers opting for lower-priced items due to economic uncertainties. This trend has impacted the average transaction value, resulting in lower overall revenue growth.
Amazon's CEO, Andy Jassy, highlighted that consumers are continuing to prioritize essential purchases, which has led to brisk sales for Amazon's lower-priced Everyday Essentials business. However, the company is still grappling with the impact of the volatile news environment and economic pressures on consumer spending habits.
Amazon's stock price has been affected by these factors, with the recent drop reflecting the uncertainty surrounding the company's sales outlook. Despite these challenges, Amazon remains a significant player in the e-commerce market, and its ability to adapt to changing consumer behavior will be crucial for its future performance.